THE  UNIVERSITY 


OF  ILLINOIS 

LIBRARY 


fINAL  REPORT  or  THE  SPECIAL 
WATE^ORKS  COMMITTEE 
FEBRUARY  5,  1906 

(/U-X-'V-TX  , ]Y[ajlA\ 


THB  ANPf  ARBOR  PRBgft 


62  8.  1 
V73 


FINAL  REPORT  OF  THE 
SPECIAL  WATERWORKS  COMMITTEE 
FEBRUARY  5,  1906 


Ann  Arbor,  Michigan,  Feb.  5,  1906. 
To  the  Honorable,  the  Common  Council 

of  the  Cit}'  of  Ann  Arbor. 

Gentlemen : 

Your  Committee  appointed  by  your 
honorable  body,  February  20,  1905,  to 
investigate  and  report  upon  the  water 
supply  of  the  city,  begs  leave  to  submit 
the  following: 

There  is  no  more  important  interest 
in  a community  than  its  water  supply. 
This  is  especially  applicable  to  Ann 
Arbor.  This  city  is  situated  in  a beauti- 
ful valley;  its  natural  attractions  are 
great;  it  has  now  18,000  inhabitants;  it 
has  grown  rapidly  for  fifteen  years;  this 
rate  of  growth  still  continues;  it  is  a 
city  of  homes  for  a highly  cultured  peo- 
ple; it  is  well  located  for  busniess,  for 
health,  for  enjoyment,  for  culture;  it 
is  justly  famous  for  its  unsurpassed 
educational  advantages;  its  property  is 
valued  at  $11,000,000,  and  is  worth 
$15,000,000;  it  already  has  many  pros- 
perous manufacturing  industries ; its 
greatest  single  interest  is  its  University; 
this  represents  an  investment  in  build- 
ings of  $1,650,000,  and  in  equipment  of 
$1,000,000;  this  brings  every  year  within 
our  gates  more  than  4,000  strangers  from 
all  corners  of  the  earth;  they  bring  and 
leave  with  us  at  least  $2,000,000  every 
year;  the  city  is  in  a way  a trustee  of 
this  property  and  the  health  and  lives 
of  those  who  come  as  students,  or  to 
obtain  treatment  in  our  hospitals.  These 


make  Ann  Arbor  peculiarh’^  exposed  to 
the  spread  of  communicable  diseases, 
and  the  calamity  from  such  would  be 
felt  almost  all  over  the  United  States. 
From  these  considerations  there  is  an 
extraordinary  duty  of  vigilance  incum- 
bent upon  all  our  public  authorities  to 
see  to  it  that  the  people  and  their  pro- 
perty receive  no  detriment,  that  our  san- 
itary conditions,  and  the  condition  of 
our  water  supply  be,  and  be  kept,  above 
suspicion  and  that  the  property  and  lives 
of  those  entrusted  to  their  care,  be  ade- 
quately and  vigilantly  protected  in  every 
way  that  the  highest  knowledge  and  the 
best  skill  can  devise.  It  is  believed 
that  some  such  considerations  as  these 
were  in  the  minds  of  the  Council  when 
they  placed  upon  this  Committee  the 
duty  to  investigate  the  water  supply  of 
the  city.  It  has  been  with  this  feeling 
uppermost  that  the  Committee  has  un- 
dertaken its  work — not  to  accuse  or  con- 
demn, nor  to  palliate  or  excuse — but  to 
ascertain  what  the  conditions  pertaining 
to  the  water  supply  in  this  city  really 
are,  and  to  recommend  such  means  as 
in  its  judgment  will  lead  to  their  better- 
ment. 

Many  of  the  questions  have  involved 
most  difficult  legal,  engineering,  sani- 
tary and  economic  questions — many  of 
which  it  has  been  possible  to  answer 
only  approximately  with  the  means  at 
hand  and  the  information  that  could  be 
obtained.  The  conclusions  herein  are 
based  upon  the  best  information  th^. 


_ 4 — 


Committee  was  able  to  secure,  and  are 
subject  to  re-verification  of  the  data 
obtained. 

The  general  conclusions  of  the  Com- 
mittee follow,  with  the  facts  and  reasons 
upon  which  they,  are  based,  together 
with  recommendations  for  action  by  the 
Council. 

I. 

(The  legal  rights  of  the  City  and  the 
inhabitants  thereof,  and  the  legal  duties 
of  the  Water  Company  under  its  con- 
tract with  the  City,  with  the  best  meth- 
ods of  protecting  the  former  and  en- 
forcing the  latter.) 

The  City  has  the  right’. 

(1)  To  an  adequate  supply  of  water 
for  domestic,  commercial,  sanitary  and 
fire  purposes,  including  the  supply  of 
public  buildings,  the  sprinkling  of  streets 
and  the  flushing  of  sewers. 

(2)  To  a supply  of  wholesome  water 
suitable  for  domestic  purposes,  free  from 
dangerous  contamination,  drawn  from 
sources  not  liable  to  dangerous  contam- 
ination, and  a degree  of  care  used  in 
collecting  and  distributing  it,  and  in  pre- 
serving its  sanitary  condition,  commen- 
surate with  the  calamity  that  would  re- 
sult from  dangerous  contamination. 

(3)  To  have  the  water  furnished 
continuously  for  ordinary  purposes  un- 
der the  reservoir  pressure  called  for  in 
he  contract,  i.  e.,  sufficient  to  throw  six 
streams  through  100  feet  25/^-inch  rub- 
ber lined  hose,  i-inch  nozzle,  the  dis- 
tances stated  in  the  contract. 

(4)  To  have  direct  pressure  at  all 
times  under  like  conditions  to  the  ex- 
tent named  in  the  contract,  whenever 
called  for,  or  needed,  for  fire  protection. 

(5)  To  have  the  water  furnished  to 
the  city  at  the  rates  named  in  the  con- 
tract, including  the  flushing  of  sewers 
by  automatic  tanks  properly  adjusted, 
at  the  price  stated  in  the  contract. 

(6)  To  have  water  furnished  to  the 
inhabitants,  under  the  conditions  named, 
at  reasonable  rates. 

(7)  To  fix  and  enforce  reasonable 
rates  by  the  Common  Council. 

(8)  To  make  and  enforce  reasonable 
regulations  governing  the  use  of  water. 


binding  on  the  company  and  the  inhab- 
itants. 

(9)  To  have  such  proper  informa- 
tion as  to  cost  of  plant  and  cost  of  oper- 
ation of  the  water  works,  as  will  enable 
the  Common  Council  to  fix  reasonable 
rates. 

(10)  To  purchase  the  works  at  an 
agreed  price,  or  at  a price  fixed  by  a 
commission  appointed  by  the  Supreme 
Court  upon  application  by  the  city.  The 
decision  of  such  a commission  would  be 
binding  upon  both  parties. 

The  City  has  the  following  remedies: 

If  the  contract  has  been  substantially 
violated  by  the  Company,  or  there  is  a 
refusal  by  it  to  perform  all  of  its  obliga- 
tions, the  City  can  bring  action. 

(1)  To  rescind  the  contract;  or 

(2)  Maintain  mandamus  to  compel 
its  full  and  fair  performance. 

We  believe  the  latter  is  the  more  ap- 
propriate remedy,  under  all  the  circum- 
stances. 

2. 

(Whether  or  not,  and  if  so  to  what 
extent  and  in  what  particulars,  the  com- 
pany has  heretofore  violated,  or  is  now 
violating,  its  duties  to  the  City  or  its 
inhabitants.) 

The  Company  has  violated  its  duties 
in  the  following  particulars: 

(1)  By  failing  in  the  past,  and  at 
present,  to  furnish  an  adequate  quantity 
of  water  for  both  public  and  private 
purposes,  and  by  interfering  with  the 
tanks  used  in  properly  flushing  the 
sewers. 

(2)  In  drawing  water  from  unsafe 
sources,  and  collecting  and  distributing 
it  in  unsanitary  ways. 

(3)  In  failing  to  aerate  the  water  as 
required  by  the  contract. 

(4)  In  failing,  at  various  times,  to 
furnish  the  reservoir  pressure  called  for ; 
in  failing  to  enlarge  the  supply  mains 
which  bring  water  to  the  city,  so  as  to 
make  them  adequate  to  meet  the  in- 
creased demands  due  to  the  necessary 
extension  of  the  distribution  and  ser- 
vice pipes;  and  in  absolutely  refusing 
to  furnish  the  direct  pressure  called  for 
in  case  of  fire,  except  when  cleaning  the 
reservoir. 


- 5 - 


3. 

(The  present,  and  all  available,  sources 
of  supply  of  water  to  the  city,  together 
with  the  geological,  sanitary  and  other 
qualities  and  conditions  connected  there- 
with,) 

The  present  source  of  supply  of  water 
is  mainly  springs  and  wells,  located  at 
what  are  called:  Station  No.  i,  up  the 
river  about  one  mile  from  the  city;  and 
Station  No.  2,  in  the  valley  between 
Washington  and  Liberty  streets. 
a.  The  Present  Supply. 

At  Station  No.  i,  water  is  drawn 
from : 

(1)  A spring  supply  along  a creek 
on  the  opposite  side  of  the  river.  This 
water  is  first  collected  in  two  or  three 
wells  about  eight  feet  deep,  located  in 
very  unsanitary  situations.  At  present 
there  seems  to  be  no  part  of  the  supply 
drawn  directly  from  the  spring  further 
up  Allen  Creek,  on  the  Tower  farm. 

(2)  Most  of  the  water  at  this  station 
is  obtained  from  wells  from  60  to  120 
feet  deep,  part  of  which  is  collected  in 
tile  drain  pipes  laid  a few  feet  under  the 
surface  of  the  ground  in  a lot  that  is 
at  times  used  as  pasture  for  a cow  or 
horse. 

(3)  River  connections  exist  at  this 
station,  and  these  are  at  times  drawn 
upon. 

An  average  supply  of  about  700,000 
gallons  daily  is  all  that  can  be  counted 
on  from  this  station,  outside  of  the 
river. 

At  Station  No.  2,  water  is  drawn 
from : 

(1)  Deep  wells,  120  to  150  feet  deep. 

(2)  Shallow  wells  25  to  35  feet  deep, 
situated  in  the  bottom  of  a valley,  on 
the  steep  side  slopes  of  which  are  located 
several  stables  and  many  privies. 

(3)  A spring  located  further  up  the 
valley  in  the  side  of  a small  creek  run- 
ning through  a meadow  and  pasture 
field  over  which  the  Company  has  no 
control.  Some  of  this  water  is  also  col- 
lected through  drain  pipes  situated  a few 
feet  below  the  -surface  of  the  bottom  of 
the  valley. 

The  deep  well  supply  here  will  fur- 
nish about  700,000  gallons  daily;  the 


shallow  wells  probably  300,000  gallons 
daily;  and  the  spring  supply  is  claimed 
to  be  1,000,000  gallons  daily,  but  the 
measurements  made  shortly  before  it 
was  utilized  showed  less  than  75,000 
daily. 

b.  The  Future  Supply. 

The  Huron  River  is  probably  the  only 
available  adequate  source  of  supply  for 
the  increasing  population  of  the  city. 
The  minimum  flow  of  the  Huron,  so  far 
as  we  have  been  able  to  learn  from 
such  gaugings  as  have  been  made,  is 
about  400,000  gallons  per  mniute;  the 
maximum  supply  necessary  for  all  pur- 
poses of  the  city  of  Ann  Arbor  will  not 
exceed  10,000  gallons  per  minute  for  the 
next  twenty  years,  and  would  not  much 
exceed  2 per  cent  of  the  total  available 
supply  from  this  source.  The  quality  of 
the  water  is  such  that  it  would  require 
filtering  for  use.  As  to  the  right  of  the 
city  to  use  water  from  the  Huron  River 
there  may  be  some  doubt,  depending 
upon  the  extent  to  which  mill  rights 
have  already  been  acquired  by  private 
parties.  In  the  absence  of  such  mill 
rights,  the  city  is  probably  a riparian 
owner,  and  can  take  water  from  the 
river  for  the  supply  of  all  its  inhabitants. 
This  right,  however,  seems  not  to  in- 
clude the  right  to  draw  directly  from 
the  mill  pond  of  anyone  who  has  mill 
rights  in  the  river.  If  there  is  any  part 
of  the  river  within  the  limits  of  the  city, 
not  already  subject  to  prior  mill  rights, 
the  city  should  take  immediate  steps  to 
secure  and  protect  the  same. 

The  geological,  sanitary  and  chemical 
condition  of  the  supply  of  water  is  fully 
dealt  with  in  Professor  Russell’s  report, 
heretofore  submitted  to  the  Council. 

4. 

(The  power  and  authority  of  the  city 
to  construct  water  works  of  its  own, 
and  the  best  method  of  proceeding  there- 
in.) 

The  city  has  ample  power  to  construct 
water  works  of  its  own,  but  cannot  do 
so,  so  long  as  the  present  contract  grant- 
ing exclusive  privileges  to  the  Water 
Company,  continues  in  effect  If  it  was 
rescinded  the  city  would  have  the  right 
and  power  to  construct  water  works,  but 


— 6 — 


could  not  go  more  than  three  miles  be- 
yond the  city  limits  in  doing  so,  and  the 
works  could  not  cost  over  $1,100,000. 
The  rescission  of  the  contract  with  the 
Water  Company  would  not  terminate 
the  Company’s  right  to  use  the  streets 
for  furnishing  water  to  the  inhabitants, 
if  it  chose  to  continue  in  business. 

5- 

(The  probable  cost  of  constructing 
new  and  up-to-date  works  adequate  to 
the  satisfactory  present  and  future  sup- 
ply of  the  city  and  its  inhabitants,  and 
for  adequate  lire  protection.) 

The  population  of  the  city  has  in- 
creased rapidly — for  the  decade  1890- 
1900  the  rate  has  been  about  4 per  cent 
per  annum.  This  rate  has  continued  up 
to  the  present  time.  The  population  of 
the  city  can  be  safely  estimated  for 
1905,  at  17,400;  for  1915,  at  over  25,000; 
and  for  1925,  at  over  36,000.  The  aver- 
age consumption  of  water  is,  and  will 
continue  to  be,  100  gallons  daily  per  cap- 
ita. At  these  figures,  the  average  quan- 
tity of  water  required  daily  is,  now 

1.750.000  gallons;  in  1915,  it  will  be  over 
2,500,000;  and  in  1925,  it  will  be  over 

3.600.000.  During  the  summer  months, 
the  requirement  now  is  a little  over 

2.000. 000  gallons  daily;  in  1915,  it  will 
be  over  3,000,000;  and  in  1925,  it  will 
be  nearly  4,500,000. 

For  ordinary  purposes,  the  maximum 
rate  of  consumption  during  the  times 
of  largest  consumption,  daily  and  hourly, 
is  now  about  2,700  gallons  per  minute; 
in  1915,  this  will  be  4,000;  and  in  1925, 
5,600. 

For  adequate  fire  protection,  there 
should  be  available,  over  and  above  the 
rate  of  ordinary  supply  above  mentioned, 

3.000  gallons  per  minute;  in  1915,  3^500; 
and  in  1925,  4,250.  If  a six-hour  fire 
should  happen  at  the  time  of  maximum 
ordinary  consumption,  the  total  daily 
supply  for  ordinary  purposes  and  six 
hours’  fire,  can  now  easily  reach  3,600,- 
000  gallons;  in  1915,  it  sliould  be  5,000,- 
000;  and  in  1925,  it  should  be  7,000,000. 

For  an  adequate  fire  stream,  for  in- 
side purposes,  a continuous  nozzle  pres- 
sure of  25  pounds  is  required;  and  for 
first  class  outside  streams  in  business 


parts  of  a town,  75  pounds  nozzle  pres- 
sure is  often  required.  The  friction  in 
hose  is  such  that  for  the  ordinary 
lengths  of  hose  usually  used,  100  to  300 
feet,  60  pounds  hydrant  pressure  is  nec- 
essary for  inside  hose  streams,  and  from 
100  to  175  pounds  for  outside  streams  in 
business  districts.  For  residence  dis- 
tricts a hydrant  pressure  of  60  pounds 
is  considered  sufficient  for  outside 
streams,  if  the  hose  does  not  exceed  300 
feet.  With  175  pounds  hydrant  pres- 
sure, 2-inch  nozzle,  with  400  feet  of 
3-inch  rubber  lined  hose,  1,000  gallons 
per  minute  can  be  poured  upon  a fire 
with  great  force.  It  is  usual,  however, 
to  regard  more  than  130  pounds  hydrant 
pressure  as  beyond  the  limit  of  safety 
unless  the  pipes  are  extra  heav}'. 

The  elevations  of  the  city  are  such 
that  if  a static  pressure  of  100  pounds 
was  fixed  for  Main  street  (830  foot 
level),  where  there  should  be  such  a 
pressure  for  fire  purposes,  the  extremes 
would  not  exceed  130  pounds  in  the 
lowest  parts  of  the  city,  and  not  be  less 
than  60  pounds  on  the  highest  elevations. 

The  foregoing  pressure  requirements 
are  flowing  pressures— that  is,  must  be 
kept  up  while  the  water  is  flowing  at 
the  rates  necessary.  The  friction  in  pipes 
varies  with  the  length  and  rate  of  flow- 
age  ; and  mains  have  to  be  used  of  a 
size  large  enough,  not  only  to  meet  the 
existing,  but  also  the  future,  demands. 

At  present,  the  population  of  the  city 
is  distributed  in  elevation  approximately 
as  follows:  807-830  feet,  5,000;  830-853 
feet,  3,000;  853-876,  8,000;  876-899,  2,000. 
In  1925  there  will  probably  be  15,000 
people  between  the  899-922  foot  levels, 
since  three-fourths  of  the  growth  must 
necessarily  be  upon  the  high  elevations. 
These  differences  in  elevatio’is  corres- 
pond to  JO  pounds  static  pressure. 

A hydrant  pressure  of  60  pounds  re- 
quired 139  feet  head.  To  secure  this  on 
the  high  elevations  of  the  city  would  re- 
quire an  elevation  of  1061  feet,  or  64 
feet  above  the  reservoir  hill.  By  build- 
ing a water  tower  100  feet  high  on  the 
reservoir  hill,  a head  of  36  feet  could  be 
obtained  for  overcoming  the  friction  in 
the  distribution  pipes;  and  with  such  a 


— 7 ~ 


margin  a distribution  system  sufficient 
for  domestic  and  fire  purposes  for  the 
present,  and  for  twenty  years  in  the 
future,  could  be  designed. 

Such  a plant  would  require,  at  present, 
a filter  for  3,000,000  gallons  daily  from 
the  river ; a reservoir  of  the  present 
capacity ; a standpipe  or  water  tower 
100  feet  high;  pipe,  24-inch,  8,800  feet; 
20-inch,  4,500  feet;  14-inch,  6,000  feet; 
12-inch,  5,000  feet;  lo-inch,  25,500  feet; 
8-inch,  17,000  feet;  6-inch,  275,000  feet; 
400  hydrants;  two  first  class  300  horse- 
power steam  turbine  pumps,  with  all 
appurtenances ; the  requisite  land  and 
buildings;  and  would  cost  approximately 
$600,000,  Such  a plant  would  be  fully 
adequate  for  all  present  purposes  and 
could  be  easily  added  to,  to  meet  all 
demands  to  1925  at  perhaps  an  addition 
of  about  $15,000  per  year  for  extensions. 
The  foregoing  estimates  are  subject  to 
verification  of  the  data  upon  which  they 
are  based,  by  actual  survey  and  meas- 
urements. 

6. 

(The  probable  expense  of  operating 
the  same.) 

The  probable  expense  of  operating 
and  maintaining  such  an  up-to-date 
works,  with  careful  supervision,  would 
be  about  $16,000  per  year  at  present — 
$25  per  million  gallons  pumped.  This 
is  a liberal  estimate,  and  might  be,  with 
strict  economy,  reduced  to  $13,000.  In 
1896,  the  operating  expenses  per  million 
gallons  pumped,  by  eight  private  com- 
panies in  Michigan,  were  $14.17;  in 
twelve  municipal  plants  in  the  state  for 
the  same  year  the  operating  expenses 
were  $14.68  per  million  gallons;  in  1904, 
in  eight  municipal  plants  in  Michigan, 
the  operating  expenses  were  $16.85  per 
million  gallons  pumped;  and  the  average 
operating  expenses  for  the  three  years, 
1893,  1896  and  1900,  of  the  Ann  Arbor 
Water  Company,  did  not  exceed  $22.40 
per  million  gallons  pumped.  It  was 
clearly  shown  by  the  Government  inves- 
tigation in  1899  that  the  larger  the 
amount  pumped,  the  less  were  the  oper- 
ating expenses  per  million  gallons.  In 
1915,  therefore,  the  operating  expenses 
would  probably  be  about  $20,000;  and  in 


1925,  $26,000.  These  figures,  of  course, 
do  not  include  expense  of  extensions, 
nor  interest  on  the  investment,  nor  any- 
thing for  a sinking  fund. 

7. 

(The  probable  rates  at  which  water 
could  then  be  furnished  to  the  city  and 
its  inhabitants.) 

This  is  considered  below  under 
“Rates.” 

8. 

(The  fair  and  reasonable  value  of 
the  plant  of  the  present  Water  Co.) 

According  to  the  best  information 
available,  the  fair  and  reasonable  value 
of  the  Water  Company’s  plant  to  the 
city,  in  case  of  purchase,  does  not  ex- 
ceed $285,000,  including  the  exclusive 
franchise  yet  held  by  the  Company  for 
furnishing  water  to  the  city.  This  fran- 
chise, in  case  it  has  not  been  forfeited, 
may  fairly  be  valued  at  about  $50,000; 
and  although  this  exclusive  franchise 
was  given  to  the  Company,  in  case  it 
has  not  been  forfeited,  it  is  valuable 
property  of  which  the  Company  cannot 
be  divested.  In  case  the  city  wished  to 
purchase,  it  could  fairly  afford  to  pay 
this  sum,  $50,000,  for  it,  rather  than 
enter  into  competition  with  the  Water 
Company.  The  plant  proper  of  the 
Company  could  not  be  utilized  by  the 
city  in  such  a way  as  to  make  it,  in 
its  present  condition,  worth  more  than 
about  $235,000  to  the  city.  This  is  based 
upon  the  supposition  that  the  distribu- 
tion system  is  in  the  fair  condition  it  is 
asserted  to  be.  There  has  been  no  op- 
portunity nor  facility  to  investigate  the 
actual  condition  of  the  machinery,  nor 
to  ascertain  whether  the  pipes  are  in- 
crusted,  leaky,  rusted  badly,  or  rotten 
from  electrolysis.  The  actual  amount 
and  condition  of  the  physical  property, 
and  the  location  of  the  source  of  ade- 
quate supply,  are,  of  course,  basic  ele- 
ments in  the  real  value  of  the  Com- 
pany’s property. 

The  mean  valuation,  according  to 
Riggs  and  Sherman,  after  correction,  is 
$305>754-  This,  however,  was  simply  a 
valuation  of  the  plant  as  it  is,  without 
regard  to  its  fitness  for  the  uses  of  the 
city. 


If  the  direct  pressure,  which  we  be- 
lieve the  contract  calls  for,  could  be 
furnished  in  case  of  fire,  most  of  the 
places  on  the  larger  mains,  and  where 
there  is  a good  gridiron  arrangement 
of  6-inch  pipes,  with  close  hydrant  spac- 
ing, and  at  levels  not  above  870  feet, 
would  have  what  would  be  called  fair 
fire  protection.  For  several  years,  the 
city  has  passed  much  beyond  this,  and 
now  a large  per  cent  of  the  population 
lives  above  this  level,  and  the  growth 
of  future  years  will  be  almost  entirely 
above  this  level.  These  places  cannot 
have  fair  fire  protection  from  the  water 
works  without  material  additions,  and, 
as  the  city  grows  more,  and  more  water 
is  required,  the  fire  protection  will  dim- 
inish in  all  parts  of  the  city. 

9- 

(The  probable  cost  of  making  it  ade- 
quate to  the  present  and  future  needs  of 
the  city  and  its  inhabitants.) 

To  make  such  changes  and  additions 
to  the  plant  of  the  Water  Company  as 
would  make  it  adequate  for  the  present 
supply  of  the  city  and  its  inhabitants 
for  all  purposes — public,  domestic,  com- 
mercial and  fire — such  as  the  city  should 
have;  and  if  all  the  property  of  the 
Company  could  be  utilized,  would  re- 
quire $300,000,  allowing  for  parts  that 
could  not  be  used  $350,000.  With  an 
expenditure  of  such  sum,  the  plant 
could  be  made  first  class  in  every 
particular,  and  capable  of  being  devel- 
oped as  rapidly  as  the  increase  of  popu- 
lation would  require  for  twenty  or  thirty 
years  or  more. 

10. 

(What  would  be  reasonable  rates  to 
be  charged  by  such  Company,  should 
the  works  be  so  perfected.) 

This  is  considered  below  under 
“Rates.” 

II- 

(The  price  at  which  such  works  could 
be  purchased.) 

The  only  price  which  has  been  offered 
by  the  Company  to  the  city  is  $450,000. 
This  was  the  price  made  in  1901.  The 
same  offer  was  made  again  last  year,  in 
May.  The  Company  has,  it  is  under- 
stood, $87,500  of  capital  stock  outstand- 


ing, and  $276,000  of  5 per  cent  bonds 
outstanding.  These  together  make  $363,- 
000,  and  it  is  probable  that  the  plant 
could  be  bought  for  this  sum,  though  no 
such  offer  has  been  made. 

RATES. 

(Questions  7 and  10.) 

The  city  and  the  inhabitants  • are  en- 
titled to  have  water  furnished  at  reason- 
able rates  under  the  contract.  They 
must  be  reasonable  both  to  the  consumer 
and  to  the  company  if  furnished  by  a 
company — and  according  to  the  decis- 
ions the  consumer’s  interest  is  para- 
mount, provided  the  rate  is  not  so  low 
as  to  deprive  the  company  of  its  property 
without  fair  compensation. 

As  to  the  consumer,  a rate,  to  be  rea- 
sonable, must  not  be  more  than  it  would 
cost  him  to  supply  himself,  with  sub- 
stantially the  same  service.  With  wind- 
mill pump  one  can  now  supply  from  a 
well  a family  of  ten  persons,  and  have 
water  for  sprinkling  and  garden  pur- 
poses, as  fully  and  satisfactory  as  the 
Water  Company  does  or  can,  for  less 
than  $10  per  year — and  own  his  own 
plant.  With  a gasoline  engine  the  cost 
for  like  service  would  not  exceed  $12 
per  year. 

In  general,  the  company  is  entitled  to 
a fair  income  upon  the  money  actually, 
economically,  honestly  and  intelligently 
invested,  and  in  fact  used  by  it,  and  with 
the  works  economically  operated,  with- 
out allowance  for  depreciation,  exten- 
sions, or  sinking  funds.  The  rate  of 
interest  for  which  it  can  borrow  money 
on  a mortgage  of  its  plant  is  a fair  test 
of  the  income  to  which  it  is  entitled 
on  the  money  so  invested.  This  is  5 
per  cent  at  the  present  time,  in  the  case 
of  the  Ann  Arbor  Water  Company.  The 
amount  of  money  invested  and  now  act- 
ually used  by  the  Company  does  not 
exceed  $300,000,  The  city  could  borrow 
money  at  4 per  cent,  possibly  3^2  per 
cent.  If  the  city  borrowed  money,  and 
wished  to  repay  it  in  30  years  on  the 
serial  bond  plan,  the  amounts  to  be 
raised  annually  for  interest  and  princi- 
pal would  be  as  follows: 


Annual  Payments. 

At  3'/^%  At  4% 

$ 50,000 $ 2,718.57 $ 2,891.50 

300.000  16,311-39 I7»34903 

400.000  21,748.52 23,132.04 

500.000  27,185.65 28,915.05 

600.000  32,622.78 34,698.06 

If  the  repayment  was  to  be  made  by 

the  establishment  of  a sinking  fund  in- 
stead, it  is  safe  to  say  that  the  sums 
set  aside  annually  could  not  be  cer- 
tainly invested  at  a rate  of  more  than 
3 per  cent.  The  annual  sums,  in  addi- 
tion to  the  interest  to  be  set  aside,  at 
this  rate,  to  repay  the  principal  in  30 
years  would  be: 

Int.  Sinking 
at  4%  Fund  Total 
For$  50,000  $ 2,000  $ 1,050.96  $ 3,050-96 

300.000  12,000  6,305.79  18,305.79 

400.000  16,000  8,407.72  24,407.72 

500.000  20,000  10,509.65  30,50965 

600.000  24,000  12,611.58  36,611.58 
In  a city,  such  as  Ann  Arbor,  the  cost 

of  constructing  water  works  adequate 
for  full  fire  protection  for  all  parts  of 
the  city,  is  approximately  twice,  and  the 
operating  expenses  and  repairs  one  half 
more,  than  what  they  would  be  for  dom- 
estic and  business  purposes  alone.  This 
being  the  case,  it  would  be  reasonable 
for  the  whole  public  who  have  the  same 
fire  protection,  if  adequate,  to  pay  one- 
half  of  the  interest  on  the  investment 
and  one-third  of  the  operating  expenses 
— although  the  actual  amount  of  water 
used  for  all  public  purposes,  including 
is  share  of  waste,  usually  does  not  ex- 
ceed 10  per  cent  of  the  total  amount. 

Further,  since  the  whole  investment 
is  made  for  the  purpose  of  supplying 
water  to  all  the  inhabitants,  and  since 
there  is  a duty  to  supply  all  who  call  for 
service,  and  this  investment  is  made  for 
the  benefit  of  all  whether  they  take  water 
or  not,  it  seems  fair  that  all  should  pay, 
by  tax,  the  other  half  of  the  interest  on 
the  investment,  and  not  those  who  take 
water.  And  since  all  would  receive  the 
benefit  of  the  payment  of  the  whole  cost, 
the  sinking  fund,  or  serial  bond  pay- 
ments, should  be  borne  by  all.  If  this 
is  correct,  then  consumers  should  be 
charged  only  with  two-thirds  of  the  op- 


erating expenses — ^the  sum  it  costs  to 
furnish  them  with  water. 

Extensions  and  betterments  should  be 
charged  to  investment,  upon  which  inter- 
est is  to  be  paid. 

While  the  foregoing  principles  of  rate 
adjustment  between  the  public  and  the 
consumers  are  believed  to  be  correct, 
they  are  not  in  accordance  with  the  usual 
practice.  The  division  between  the  pub- 
lic and  the  consumers,  where  any  fair 
division  is  attempted,  is  upon  the  basis 
of  the  relative  cost  of  the  investment 
for  public  and  private  service,  and  ot 
operating  expenses  due  to  these  services 
respectively.  These,  as  above  stated,  are 
one-half  of  investment  for  each,  and 
one-third  of  operating  expenses  for  pub- 
lic service. 

It  is  generally  found  that  in  cities 
similar  to  Ann  Arbor,  50  per  cent  of 
the  water  used  (allowing  for  leakage) 
is  for  domestic  purposes,  40  per  cent 
for  commercial  purposes,  and  10  per 
cent  for  public  purposes.  Dwellings, 
then,  should  pay  about  56  per  cent  of 
the  sum  to  be  raised  by  rates,  and  busi- 
ness houses  44  per  cent. 

In  Ann  Arbor  there  are  about  3600 
dwellings,  a little  over  half  of  which 
(say  1850)  take  water  at  present,  and 
of  these  approximately  80  are  5-rooms; 
120,  6-rooms;  240,  7-rooms — the  balance, 
1310,  being  over  8-rooms — most  of  which 
have  a bathroom  and  a closet,  and  a 
majority  of  the  owners  of  which  sprinkle 
their  lots.  About  100  buildings  are 
built  each  year. 

There  are  in  the  city  9 bakeries;  4 
banks;  18  barbers;  4 billiard  halls;  13 
boarding  houses;  2 brewers;  9 black- 
smiths; 17  dentists;  10  druggists;  3 flor- 
ists; 36  fraternities;  41  grocers;  8 ho- 
tels; 3 private  hospitals;  14  laundries; 
8 livery  stables ; 35  manufacturers ; 7 
photographers;  5 printers;  8 restau- 
rants; 37  saloons;  and  57  stores  of  var- 
ious kinds. 

Applying  the  principles  above  set  forth 
to  the  conditions  in  Ann  Arbor,  upon  a 
basis  of  4 per  cent  serial  bond  plan,  for 
works  that  cost  the  following  sums, 
the  adjustment  would  be  as  follows: 


— 10  — 


$300,000  $6oo,ooo 


Serial  bond — 30  years. . 

17,349 

34,698 

Operating  exp.,  repairs. 

etc 

16,000 

16,000 

Total  to  be  raised... 

33,349 

50,698 

Public,  1-2  of  bond.... 

8,675 

17,349 

1-3  operating  exp. . . . 

5,333 

5,333 

Total  by  public.  . . . 

14,008 

22,682 

Private,  1-2  bond 

8,675 

17,349 

2-3  operating  exp. . . . 

10,667 

10,667 

Total,  private 

19,342 

28,006 

Average  rate  per  1,000 

gals 

3c 

4^/^c 

Commercial  purposes 

44%  $ 0,510  $ 

12,322 

Dwellings  (1800)  56%. 

10,382 

15,784 

Dwellings,  average 

6 

9 

Approximate  Amounts  Now  Paid. 

City  

Commercial  and  Univ.. 

.$  7,000 
. 11,000 

$18,000 

Dwellings,  etc 

Total  

. 21,000 

.$39,000 

In  other  words,  if  the  city  could  ac- 
quire the  present  plant  for  what  has 
actually  been  invested  in  it,  and  still 
used  in  supplying  the  city  with  water, 
it  could  pay  for  it  in  30  years,  and  lower 
the  rates  nearly  $6,000  (almost  20  per 
cent),  or  cut  down  the  sum  paid  by  the 
city  for  hydrant  rental  to  about  $1,000, 
leaving  the  rates  as  they  now  are.  F.or 
such  fire  service  as  the  city  now  has 
from  the  water  works,  it  would  not  be 
fair  to  charge  half  of  the  investment, 
nor  one-third  of  the  operating  expenses 
— for  the  reservoir  pressure  alone,  the 
machinery  and  pipes  are  scarcely  more 
than  such  as  are  necessary  for  domestic 
service — and  $5, 000  per  year  would  be 
a large  allowance  for  such  service. 

On  the  other  hand,  if  the  city  built 
works  of  its  own,  or  could  acquire  the 
present  plant  at  its  fair  value,  and  make 
it  fully  adequate  for  all  the  purposes 
of  a city  of  this  size,  if  the  public  should 
raise  by  taxation  $18,000  per  year  for 
30  years,  and  the  rates  paid  remain  the 
same  as  now,  the  entire  plant  could  be 


paid  for  in  30  years — even  though  it  cost 
$600,000;  and  in  that  case  the  city  would 
have  one  of  the  best  plants  in  the  coun- 
try. If  the  city  could  operate  as  cheaply 
as  other  cities  in  the  state  having  mun- 
icipal plants,  and  could  issue  its  .bonds 
for  3 1-2  per  cent,  on  the  serial  plan, 
and  if  the  city  raised  as  now  $7,000  by 
taxation,  the  rates  could  be  reduced 
somewhat  below  present  rates  and  still 
the  $600,000  plant  could  be  paid  for  in 
30  years. 

The  rates  charged  by  the  Water  Com- 
pany for  the  services  rendered  are  un- 
reasonably high.  Upon  a basis  of  $300,- 
000  invested,  the  interest  would  be  at 
5 per  cent,  $15,000;  operating  expenses, 
repairs  and  taxes  are  approximately 
$16,000 — making  $31,000  in  all.  The 
gross  earnings  are  approximately,  from 
the  city,  $7,000;  commercial  purposes 
and  University  of  Michigan,  $11,000; 
fraternities  and  boarding  houses,  $1,600; 
1,800  dwellings,  $18,000;  new  taps, 
$1,000;  total,  $39,000 — leaving  $8,000  for 
other  matters.  The  $23,000  of  net  earn- 
ings, after  paying  5 per  cent  interest  on 
$276,000  bonds — ^$13,800 — leave  $9,200  for 
the  stockholders,  or  over  10  per  cent. 
It  is  probable  that  only  part  of  this  is 
paid  in  dividends,  and  part  used  for  ex- 
tensions. If  such  is  the  case,  although 
they  have  been  paid  for  by  the  patrons 
of  the  Company,  they  are  undoubtedly 
charged  to  the  investment  account,  upon 
which  the  Company  claims  the  right  to 
draw  interest,  and  charge  rates  suffic- 
iently high  to  do  so.  How  much  of  the 
investment  upon  which  interest  is  now 
claimed  has  been  derived  from  earnings 
due  to  excessive  rates  it  is  impossible 
to  say  without  access  to  the  Company's 
books.  This  is  refused.  A reduction 
of  ten  per  cent  in  the  rates  now  paid, 
if  we  are  correct  in  our  premises,  could 
be  made  and  the  Company  would  then 
earn  as  much,  or  more  than,  it  is  justly 
entitled  to. 

MUNICIPAL  OWNERSPIIP. 

Our  commission  did  not  specifically 
require  us  to  report  upon  the  subject 
of  public  ownership  of  the  water  works. 
We,  however,  deem  it  proper  to  make 
the  following  statements : 


— II  — 


"One  of  the  most  remarkable  move- 
ments in  the  municipal  history  of  the 
past  century  is  the  rapid  growth  of  the 
public  ownership  of  public  utilities.” 
Turnpikes,  streets,  bridges  and  canals 
have  nearly  all  become  public.  In  the 
United  States,  water  works,  gas  light 
and  electric  light  plants,  telephones  and 
street  car  lines  have  largely  passed,  or 
are  likely  soon  to  pass,  into  public  con- 
trol. In  Europe,  railroads,  street  car 
lines,  telegraphs,  telephones,  in  addition 
to  water,  gas  and  light  plants,  together 
with  very  many  other  matters  widely 
affecting  the  public  welfare,  have  come 
under  municipal  or  state  control.  In 
1897  it  w'as  said  that  there  were  at  the 
beginning  of  he  century  practically  no 
water  works  in  the  United  States  or 
Canada,  whereas  in  1896  there  were  over 
3.300,  more  than  2,700  built  since  1880, 
and  1,400  since  1890.  A similar  growth 
has  probably  taken  place  since. 

In  1903,  of  the  cities  of  over  30,000 
population  having  water  works,  70  per 
cent  were  publicly  owned  and  operated; 
and  of  the  cities  under  30,000  having 
water  works,  a fraction  over  50  per  cent 
were  municipal  plants.  Over  75  per 
cent  of  the  w^ater  works  in  Massachu- 
setts are  public;  in  Illinois,  78  per  cent; 
in  Michigan,  81  per  cent;  Iowa,  82; 
Minnesota,  87;  and  in  Nebraska,  88. 

Down  to  1896  there  had  been  200 
changes  from  private  to  public  owner- 
ship, and  only  20  the  other  way;  and  in 
the  six  years  from  1890  to  1896,  there 
were  over  100  changes  from  private  to 
public,  and  only  six  or  seven  from  pub- 
lic to  private  ownership.  Since  this  date 
the  changes  have  been  substantially  all 
from  private  to  public  ownership  of 
water  works.  Many  of  the  states,  nota- 
bly Ohio,  Illinois,  Missouri,  Kansas  and 
California,  have  enacted  laws  looking  to, 
or  authorizing,  the  complete  municipal- 
ization of  nearly  every  public  utility 
operated  within  any  city  in  these  states. 
All  over  the  world  at  the  present  time 
there  is  a stronger  tendency  than  ever 
before  toward  public  ownership  of  pub- 
lic utilities;  this  has  been  so  constant 
and  persistent,  and  has  grown  with 
fuller  experience,  to  such  an  extent  as 


to  make  it  certain  that  it  is  the  result, 
not  of  a freak  or  fancy,  but  of  a settled 
conviction  in  its  efficiency  to  remedy  the 
evils  arising  from  private  monopoly,  as 
well  as  secure  the  benefits  of  intelligent 
co-operation. 

The  fundamental  motive  of  private 
monopoly  is  not  primarily  public  service, 
but  private  gain — dividends  for  a few 
instead  of  service  for  all ; whereas  the 
reverse  is  true  in  the  case  of  complete 
public  ownership. 

The  evils  that  attend  private  mon- 
opoly are  patent  nearly  everywhere. 
They  have  been  enumerated,  with  much 
truth,  to  be  excessive  charges,  unreason- 
able profits,  watered  stock,  false  account- 
ing, doctored  reports,  poor  service,  un- 
just discrimination,  corruption,  defiance 
of  law,  impudent  treatment  of  those  who 
are  obliged  to  rely  upon  their  service, 
and  usually  an  unholy  alliance,  in  one 
way  or  another,  with  such  powers  of 
the  government  as  are  in  a position,  or 
are  willing,  to  serve  them  at  the  expense 
of  the  public  welfare. 

Objections  to  municipal  ownership 
exist — danger  from  the  spoils  system, 
paternalism,  socialism,  closing  the  door 
to  business  opportunity,  extravagant  ex- 
penditures, inefficient  service,  unecon- 
omical operation,  are  usually  enum- 
erated. Some  of  these  have,  in  practice, 
proved  more  fancied  than  real — and  only 
a few,  if  any,  are  inherent,  due  not  to 
the  plan,  but  to  the  fact  that  the  govern- 
ment itself  is  owned  and  run  by  a gang 
rather  than  by  the  public  body  itself. 
The  remedy  for  such  a condition  is  to 
turn  the  rascals  out;  and  their  oppor- 
tunity and  motive  for  graft  and  corrup- 
tion are  as  great  or  greater  under  pri- 
vate monopoly  ownership  of  the  things 
which  all  are  obliged  to  use  as  they 
would  be  under  public  ownership. 

There  are  positive  and  compensating 
advantages  of  public  ownership  of  the 
government  itself  and  of  public  utilities, 
possible  in  better  service,  lower  rates, 
economy  of  production,  co-ordination  of 
industries,  extension  of  facilities,  in- 
crease of  business,  no  discrimination, 
true  accounts  and  full  accountability. 

The  conditions,  however,  of  such  re- 


suits  are:  full  legal  power  and  authority 
in  a municipality  as  extensive  as  if  op- 
erated by  a private  corporation;  power 
of  eminent  domain;  extensive  police 
powers ; charges  according  to  cost  of 
service  rendered,  including  interest,  in- 
surance, taxes  relinquished,  taxes  to  be 
paid,  depreciation,  sinking  fund;  full 
and  accurate  accounts  subject  to  audit 
at  any  time ; the  creation  of  a thoroughly 
competent  Board  of  Control,  with  large 
discretionary  powers  in  determining 
questions  of  engineering,  mechanical  and 
operating  details,  subject  to  full  report 
and  strict  accountability;  and,  above  all, 
if  the  people  are  to  own  and  operate 
their  public  service  institutions,  they 
must  own  and  operate  the  government 
itself,  there  must  be  instituted  the  merit 
system  of  civil  service,  and  for  many 
cases  the  initiative  and  referendum  must 
be  open  and  prompt  and  efficient  action, 
— the  fonner  to  prevent  abuse  of  official 
and  administrative  power,  and  the  latter 
to  prevent  the  abuse  of  legislative  power. 

There  would  seem  to  be  no  more  suit- 
able place  in  the  country  than  in  Ann 
Arbor,  where  it  would  be  possible,  with 
a proper  civic  interest,  to  make  public 
ownership  possible  and  successful. 

In  the  case  of  water  works  the  results 
of  municipal  ownership  can  hardly  ad- 
mit of  doubt.  In  1890  a careful  study 
showed  that  “taking  the  United  States 
as  a whole,  the  investment  per  family 
is  about  the  same  in  public  as  in  private 
plants,  yet  the  total  rentals  averaged 
43  per  cent  more  per  family  in  private 
than  in  public  plants.’' 

A calculation  based  upon  the  figures 
given  in  the  Water  Works  Manual  for 
1897,  showed  ordinary  family  rates  in 
Massachusetts  to  be  $7.50  for  private, 
and  $5.75  for  public  plants;  in  Indiana, 
$9.75  for  private,  and  $4.66  for  public; 
in  Illinois,  $8  for  private,  and  $5.33  for 
public;  in  Texas,  $15.12  for  private,  and 
$9.25  for  public;  in  Washington,  $17  for 
private,  and  $10  for  public. 

So  also  under  private  ownership,  the 
rates  were  410  in  Syracuse,  New  York; 
$8  in  Auburn;  and  $10  in  Randolph; 
whereas  under  public  ownership  after- 
ward acquired,  the  rates  were  respec- 


tively $5,  6,  and  $4,  in  the  same  places. 
Many  similar  results  could  be  given — 
not  for  water  works  alone,  but  for  gas 
and  electric  light  plants  as  well. 

The  fullest  study  of  the  subject  that 
has  yet  been  made  was  by  the  Depart- 
ment of  Labor  in  1899;  the  results,  here, 
almost  without  exception,  were  in  favor 
of  municipal  ownership,  and  can  be 
summed  up  so  far  as  water  works  are 
concerned,  as  follows:  Cost  per  1,000,- 
000  gallons,  excluding  depreciation,  taxes 
and  interest, — private,  $41.25 — public, 
$37.67 ; cost,  including  depreciation, 
taxes  and  interest, — private,  $123.86 — 
public,  $118.54;  average  price  per  mil- 
lion gallons  sold — private,  $96.20;  pub- 
lic (often  not  including  anything  re- 
ceived for  public  supply),  $72.70. 

A recent  bulletin  of  the  Census  De- 
partment relating  to  public  ownership 
of  lighting  plants,  for  both  gas  and  elec- 
tricity, shows  results  favorable  to  public 
ownership. 

If  water  works  were  to  be  constructed 
anew  for  the  city,  the  Committee  would 
favor  municipal  ownership.  If  the  pres- 
ent works  could  be  purchased  at  approx- 
imately the  price  at  which  they  could  be 
utilized  by  the  city,  we  would  be  inclined 
to  recommend  that  such  be  done.  We, 
however,  do  not  deem  it  wise  to  pay 
anything  like  the  price  asked  by  the 
Company.  In  any  event,  before  the  city 
purchases,  we  believe  the  company 
should  give,  or  the  city  should  obtain 
and  verify,  substantially  all  the  informa- 
tion requested  in  our  unanswered  letter 
iO  the  Company,  a copy  of  which  is 
hereto  annexed  (marked  Exhibit  No.  s), 
of  April,  1905;  also  the  detailed  in- 
formation called  for  by  Professor  Davis’ 
communication  to  this  Committee,  of 
October  20,  1905,  a copy  of  which  com- 
munication is  hereto  annexed  (marked 
Exhibt  No.  7)  ; and  further  that  the 
entire  plant  of  the  company  be  put  un- 
der the  general  direction  of  a competent 
engineer  to  be  designated  by  the  Com- 
mon Council,  for  operating  and  testing 
for  such  period  during  the  summer  as 
may  be  necessary,  to  determine  its  actual 
condition,  capacity  and  performance ; 
that  these  answers  and  the  results  of 


— 13  — 


such  tests  should  be  made  public;  and 
after  the  public  are  in  possession  of  the 
information,  the  question  of  purchase 
should  be  submitted  to  the  voters  of 
the  city.  And  further,  that  it  should  be 
made  clear  to  the  voters  that  the  city  and 
the  school  district  (which  are  practically 
one)  are  already  bonded  (including 
sewer  and  paving  bonds)  for  approxim- 
ately $300,000;  that  part  of  these  bonds 
run  for  30  years  with  an  interest  charge 
of  over  $12,000,  and  during  a part  of  this 
time  require  a principal  payment  of 
$15,000  annually ; that  the  purchase 
would  probably  add  another  $300,000; 
and  to  make  the  plant  adequate  to  the 
needs  of  the  city  would  probably  entail 
an  additional  expense  of  nearly  $300,000 
more.  Before  such  purchase  was  deter- 
mined  upon,  and  after  the  facts  before 
mentioned  were  obtained,  in  the  judg- 
ment of  the  Committee,  a competent  en- 
gineer should  be  employed  to  make  pro- 
per plans  and  estimates  for  utilizing  the 
plant  if  purchased. 

While,  perhaps,  the  Common  Council 
has  power  to  ask  for  the  appointment  of 
commissioners  by  the  Supreme  Court 
to  value  the  property,  under  the  pro- 
visions of  the  contract,  which  would 
bind  the  city,  without  submitting  the 
question  to  the  voters,  we  believe  it 
would  be  unwise  to  do  so,  and  to  do  so 
at  all  until  the  rights  of  the  city  and  the 
duties  of  the  company  under  the  con- 
tract, are  fully  determined  by  a court, 
or  the  company  agrees  to  submit  these, 
and  the  question  of  their  full  perform- 
ance to  such  commissioners,  to  be  taken 
into  consideration  in  valuing  the  pro- 
perty. 

RECOMMENDATIONS. 

IVe  therefore  recommend: 

(i)  That  a fomral  request  be  made 
by  the  Common  Council  to  the  Ann 
Arbor  Water  Company  to  furnish  direct 
pressure  when  called  for  by  the  Chief 
of  the  Fire  Department;  to  disconnect 
their  pipes  from  the  Tower  farm  wells, 
the  river,  and  the  wells  less  than  50 
feet  deep  at  Station  No.  2;  to  replace 
all  drain  tile  for  collecting  water  by 
iron  pipe  with  properly  leaded  joints; 
to  take  such  steps  as  will  certainly  pre- 


vent contamination  of  the  water  from 
the  creek  on  the  White  farm;  to  have 
all  man-holes  and  other  similar  openings 
connecting  with  the  pipes  of  the  col- 
lecting systems  at  each  of  the  pumping 
stations  securely  closed;  to  have  a suit- 
able fence  constructed  about  the  col- 
lecting or  pumping  reservoir  at  the 
river  pumping  station  (Station  No.  l) 
so  as  to  prevent  persons  from  gaining 
immediate  access  to  the  said  reservoir; 
and  all  other  reasonable  and  proper  pre- 
cautions taken  to  prevent  accidental  or 
malicious  contamination  of  the  water 
supply. 

(2)  In  case  the  Company  fails 
promptly  to  comply  with  the  foregoing 
request,  we  then  renew  our  recommend- 
ation of  March  22,  1905,  that  the  City 
Attorney  be  directed  immediately  to 
bring  suit  or  suits  as  he  and  such  coun- 
sel as  may  be  employed  to  aid  him  shall 
deem  proper,  to  preserve,  protect  and 
enforce  the  city’s  rights.  Also  that  the 
Fire  Chief  be  specifically  authorized  to 
call  for  direct  pressure  for  fire  purposes, 
whenever  in  his  judgment  the  same  is 
needed. 

(3)  That  the  City  Attorney  be  dir- 
ected to  ascertain,  and  to  do  whatever 
is  necessary,  to  protect  the  rights  of  the 
City  as  a riparian  owner  to  use  the  water 
of  the  Huron  River  for  a water  supply 
for  the  city. 

(4)  That  the  request  made  by  Israel 
C.  Russell,  in  his  report  printed  in  the 
Council  Proceedings  for  Nov.  13,  1905, 
for  an  allotment  of  $40.00,  to  be  used  in 
having  two  chemical  analyses  of  the 
water  of  the  Huron  River  made,  be 
granted. 

(5)  That  a competent  geologist  and 
hydraulic  engineer  be  employed  to  find 
the  best  available,  permanent  and  ade- 
quate source,  or  sources,  of  supply  of 
water,  and  to  test  the  same,  whether 
the  water  eventually  be  taken  from  the 
Huron  River,  or  come  from  other 
sources;  and  that  no  steps  be  taken  to 
acquire  the  present  water  works  with- 
out first  finding  such  a source,  or 
sources,  of  supply. 

(6)  That,  after  a source  of  adequate 
and  permanent  supply  is  found,  a com- 


— 14  — 


petent  engineer  be  employed  by  the  city 
to  make  the  necessary  surveys,  with 
plans  and  specifications  for  using  the 
same  for  the  city,  and  constructing  such 
works  as  shall  be  fully  adequate,  ac- 
cording to  the  best  modern  practice,  for 
all  the  purposes  of  the  city  at  present, 
and  for  twenty  years  to  come,  with  es- 
timates of  the  cost  thereof;  also  to  de- 
termine with  care  what  part,  if  any,  of 
the  plant  of  the  present  company  can 
be  utilized  as  a part  of  such  plan. 

(7)  That  the  present  ordinance  fix- 
ing water  rates  be  repealed,  and  the 
rates  indicated  in  a proposed  ordinance 
attached  hereto  (marked  Exhibit  No. 
(ii)  be  fixed  by  an  ordinance  as  the 
proper  rates  to  be  charged  by  the  Ann 
Arbor  Water  Company. 

(8)  That  an  ordinance,  similar  to 
the  one  attached  hereto  (marked  Ex- 
hibit No.  13),  be  passed  and  enforced, 
providing  for  such  annual  reports  to  be 
made  by  the  Ann  Arbor  Water  Com- 
pany to  the  Common  Council,  as  will 
enable  the  Council  to  fix  fair  and  rea- 
sonable rates. 

(9)  That  an  ordinance,  similar  to 
the  one  attached  hereto  (marked  Ex- 
hibit No.  12),  be  passed  and  enforced, 
providing  for  the  creation  of  a tribunal 
havdng  power  to  investigate,  report  and 
advise  upon,  all  controversies  and  com- 
plaints between  the  Ann  Arbor  Water 
Company  and  the  inhabitants,  relative 
to  the  services  rendered,  or  to  be  ren- 
dered, by  the  said  Ann  Arbor  Water 
Company. 

(10)  That  Section  17  of  the  Ordin- 
ance of  June  6,  1894,  be  amended  by 
striking  out  in  the  fifth  and  sixth  lines 
of  the  section,  as  printed  in  the  “Char- 
ter and  Ordinances  of  the  City  of 
Ann  Arbor”  (1903),  page  223,  the 
words:  “or  the  Ann  Arbor  Water  Com- 
pany,” thereby  making  it  a misdemeanor, 
punishable  by  a fine  and  imprisonment, 
for  anyone  except  the  authorized  city 
officers  to  tamper  with  or  change  the 
adjustment  or  operation  of  the  flushing 
tanks. 

(11)  That  the  Ordinance  (Section 
16  of  the  Ordinance  of  June  6,  1894, 
printed  page  222,  “Charter  and  Ordin- 


ances of  the  City  of  Ann  Arbor”)  pro- 
viding for  the  connection  of  dwellings, 
etc.,  with  sewers,  whenever  practicable 
— be  strictly  enforced. 


EXHIBITS. 

Reference  is  made  to  the  following- 
papers  connected  with  this  investigation : 

(1)  Resolution  of  the  Common 
Council  appointing  the  Committee 
(printed  Council  Proceedings,  Feb.  20, 
1905,  page  168)  ; marked  Exhibit  No.  i. 

(2)  Collection  of  proceedings  of 
Common  Council  relative  to  water 
works  matters,  from  1885  to  June  i, 
1905 ; marked  Exhibit  No.  2. 

(3)  Testimony  of  Mr.  Fred  Sipley, 
Mr.  Walter  Mack,  Mr.  E.  W.  Groves, 
Mr.  Moses  Seabolt,  Mr.  George  R.  Ap- 
fel,  Mr.  Sid  Millard;  statement  of  Mr. 
Lawrence;  report  of  Professor  Davis; 
testimony  of  Mr.  Leverett;  statement  of 
Colonel  Dean;  report  of  Professor 
Bogle ; and  subsequent  statements  of 
Mr.  Lawrence;  marked  Exhibit  No.  3 — 
a,  b,  c,  d,  e,  f,  g,  h,  i,  j,  k,  1. 

(4)  Communication  and  recommend- 
ation of  Committee  relative  to  the  ap- 
pointment of  an  attorney  to  bring  suit, 
and  to  an  enabling  act  (printed  Council 
Proceedings,  Apr.  18,  1905,  page  3) ; 
marked  Exhibit  No.  4. 

(5)  Letter  of  the  Committee  to  the 
Water  Company,  April,  1905,  asking  for 
certain  information ; marked  Exhibit 
No.  5. 

(6)  Report  of  Professor  Davis 
(printed  Council  Proceedings,  June  5, 
1905,  page  37)  ; marked  Exhibit  No.  6. 

(7)  Letter  of  Professor  Davis  as  to 
information  necessary  to  determine  the 
condition  and  value  of  the  distribution 
system  of  the  water  works  plant ; marked 
Exhibit  No.  7. 

(8)  Report  and  supplemental  report 
of  Professor  Russell  as  to  the  water 
supply  (printed  Council  Proceednigs, 
Nov.  13  1905,  page  153)  1 marked  Ex- 
hibit No.  8. 

(9)  Second  supplemental  report  of 
Professor  Russell,  made  to  the  Com- 
mittee, Jan.  23,  1906;  marked  Exhibit 
No.  9.  See  Exhibit  No.  16,  page  44. 

(10)  Copy  of  letter  to  the  Water 


— I 

Company,  Jan.  27,  1906,  asking  for  in- 
formation necessary  for  fixing  rates ; 
marked  Exhibit  No.  10. 

(11)  Proposed  ordinance  fixing  rates 
to  be  charged  by  the  Water  Company; 
marked  Exhibit  No.  ii. 

(12)  Proposed  ordinance  establish- 
ing a tribunal  to  hear  complaints  in  re- 
gard to  water  service;  marked  Exhibit 
No.  T2. 

(13)  Proposed  ordinance  prescribing 
reports  to  be  presented  by  the  Ann  Ar- 
l)or  Water  Company;  marked  Exhibit 
No.  13. 

(14)  Section  17  of  the  Ordinance  of 
June  6,  1894,  as  amended  in  accordance 
with  Recommendation  No.  (10)  ; 
marked  Exhibit  No.  14. 

(15)  Section  16  of  the  Ordinance  of 
June  6,  1894  , recommended  to  be  strictly 
enforced  (see  Recommendation  No. 
(ii);  marked  Exhibit  No.  15. 

(16)  Minutes  of  the  meetings  of  the 
Committee  from  Feb.  24,  1905, ’the  date 
of  the  first  meeting,  up  to  and  includ- 
ing the  meeting  held  Jan,  30,  1906; 
marked  Exhibit  No.  16. 

Respectfully  submitted, 
EMMETT  COON,  Chmn., 
GEORGE  H.  FISCHER, 
ISRAEL  C.  RUSSELL, 

R.  S.  COPELAND. 

HENRY  S.  DEAN, 

I.  L.  SHERK, 

B.  FRANK  OHLINGER, 

H.  L.  WILGUS. 

.T.  B.  DAVIS, 

C.  G-  DARLING, 

Committee. 
EXHIBIT  NO.  7. 

Final  Report  Special  Water  Works 
Committee,  Feb.  5,  1906, 

Ann  Arbor,  Michigan,  Oct.  20,  1905. 
The  Special  Water  Works  Committee 

of  the  Common  Council  of  the  City 

of  Ann  Arbor. 

Gentlemen; 

Whereas  my  efforts  to  secure  informa- 
tion regarding  the  construction  and  con- 
dition of  the  distribution  system  of  the 
water  works  at  Ann  Arbor,  Michigan, 
have  so  far  proved  fruitless,  I recom- 
mend that  the  Special  Water  Works 
Committee  of  the  Common  Council  of 


5 — 

said  City  request  the  said  Common 
Council  to  furnish  said  Committee  with 
the  information  indicated  by  the  accom- 
panying schedule  of  memoranda. 
Respectfully, 

Citizen  Member  of  Committee. 


Ann  Arbor  Water  Works  Distribution 
System. 

To  determine  what  is  the  present 
construction  and  condition  of  the  dis- 
tribution system  of  the  water  works  at 
Ann  Arbor,  Michigan,  information  is 
needed  regarding  the  matters  and  things 
indicated  in  the  following  memoranda : 
Levels. 

Referred  to  mean  sea  level,  by  con- 
nection with  U.  S.  Geological  Survey 
bench  marks. 

Lowest  points  in  .system. 

Suctions. 

Force  mains. 

Highest  points  in  system. 

Where  water  is  now  delivered. 
Within  corporate  limits. 

At  reservoir. 

Top  of  bank. 

Bottom  of  reservoir. 

Discharge  outlet. 

Usual  water  level. 

Ground  at  buildings  requiring  fire 
streams. 

Elsewhere. 

At  all  street  intersections  where  pipe 
is  now  laid. 

At  all  gates. 

Ground. 

Top  of  casing  beside  valve  stem. 
Reservoir. 

Sizes, 

Dimensions  at  top  of  basin. 
Dimensions  at  bottom  of  basin. 
Depth,  from  levels. 

Locations. 

Of  inlet. 

Of  outlet. 

Pipes. 

Locations. 

Of  all  the  various  kinds  and  sizes 
of  the  main  pipes,  and  the  amounts 
of  each. 

Sizes. 

Outside  diameters. 

Inside  diameters, 


At  pumping  stations. 

Within  the  pumping  stations. 

In  the  vicinity  of  the  pumping  sta- 
tions. 

At  the  reservoir. 

Suctions. 

To  river. 

To  v/ells. 

To  basins. 

Pump  connections. 

Suctions. 

Deliveries. 

Force  mains. 

Distributing  mains. 

Elsewhere. 

Condition. 

Exterior. 

Interior. 

Joints. 

Leaks. 

Weights. 

Of  all  sizes,  from  records  of  Water 
Compan3^ 

Dates.  ' 

When  all  sizes  were  laid,  and  ex 
tensions  made,  as  shown  by  books 
of  Water  Company. 

Specials. 

Same  data  as  for  pipes — see  “Pipes” — 
as  far  as  it  applies. 

Sizes. 

Of  all  outlets  not  in  use,  and  direc- 
tion in  which  they  look. 

Gates. 

Sizes. 

Locations. 

Condition. 

Open. 

Closed. 

Partly  closed. 

As  to  the  ease  of  operation. 
Amount  of  possible  opening. 

Gate  boxes. 

Description  of. 

Condition. 

Accessibility. 

How  to  be  found,  with  data  for 
finding. 

Hydrants. 

Locations. 

Of  each  one,  with  kind  of  hydrant 
Outlets. 

Number  and  sizes  of  all  outlets. 
Positions  on  hydrant  posts. 


Kinds. 

Number  of  each  kind 
Devices  for  opening  and  dosing. 
Number  of  turns  of  wrench  to  fully 
open. 

Dates  of  setting  each  one. 

Sizes. 

Of  post. 

Outside. 

Inside. 

Valve,  or  gate,  stems. 

Of  inlet 
Setting. 

Backing  up. 

Connection  to  leader. 

Approximate  length  of  leader. 
Condition. 

As  to  setting — see  “Setting.” 

As  to  depth  of  burial  of  leader. 

As  to  accessibility. 

In  summer. 

In  winter. 

As  to  ease  of  operation. 

As  to  convenience  of  attaching  and 
serving  hose. 

As  to  whether  hydrant  can  be  fully 
opened,  or  not 
As  to  drainage. 

‘ Services. 

Locations. 

Approximate — of  all  service  pipes. 
Sizes  of  taps. 

'Number  of  taps. 

Kind  of  service. 

Domestic. 

Laundry. 

Manufacturing. 

Elevators. 

Power.  - 
Others. 

Corporation  boxes. 

Locations — approximate. 

Number. 

Yard  hydrants. 

Number  in  each  block. 

Sizes  of  outlet  connections. 

EXHIBIT  NO.  II. 

Final  Report  Special  Water  Works 
Committee,  Feb.  5,  1906. 

An  Ordinance  to  Determine,  Define 
and  Fix  the  Rates  to  be  Charged  the 
Inhabitants  of  the  City  of  Ann  Arbor, 
for  Domestic  and  Other  Uses,  by  the 
Ann  Arbor  Water  Company;  and  to 


— 17  — 


Repeal  an  Ordinance  Entitled : “An 
Ordinance  to  Determine,  Define  and  Fix 
the  Rates  to  be  Charged  the  Inhabitants 
of  the  City  of  Ann  Arbor,  by  the  Ann 
Arbor  Water  Company,  for  Water  for 
Domestic  Purposes  and  to  Repeal  an 
Ordinance  Entitled:  ‘An  Ordinance  to 
Determine,  Define  and  Fix  the  Rates  to 
be  Charged  the  Inhabitants  of  the  City 
of  Ann  Arbor  for  Water  for  Domestic 
and  Other  Uses,  by  the  Ann  Arbor 
Water  Company,*  Passed  December  i6, 
1901,  and  Approved  December  20,  1901,” 
— Passed  March  10,  1902,  and  Approved 
March  ii,  1902. 

Preamble. 

Whereas,  the  Ann  Arbor  Water  Com- 
pany has  contracted  and  agreed  to  fur- 
nish and  supply  the  inhabitants  of  the 
City  of  Ann  Arbor  water  for  domestic 
purposes  at  reasonable  rates;  and 
Whereas,  in  the  opinion  of  the  Com- 
mon Council,  the  rates  now  and  hereto- 
fore charged  the  said  inhabitants  are 
still  unreasonably  high,  therefore 
The  Common  Council  of  the  City  of 
Ann  Arbor  Ordain: 

Section  i.  That  the  rates  to  be 
charged  the  inhabitants  of  the  City  of 
Ann  Arbor  for  water  for  domestic  use 
by  the  Ann  Arbor  Water  Company  shall 
not  exceed  the  following  maximum 
rates  annually: 

Dwelling  House  Rates. 

Kitchen  use  for  one  family  occupy- 
ing not  exceeding  four  rooms.  .$2  50 


For  each  additional  room 50 

For  each  regular  boarder 25 

For  each  bath  tub,  with  six  persons 

in  family  2 00 

For  each  additional  person 25 

For  each  additional  bath  tub , i 00 

For  each  water-closet,  self-closing, 

and  wash-bowl  2 50 

For  each  additional  water-closet, 

self-closing  i 00 

For  each  additional  wash-bowl...  50 


For  hydraulic  pump,  operated  by  city 
water,  the  Ann  Arbor  Water  Company 
may  charge  schedule  rates,  herein  feed, 
for  the  fixtures  serv'ed  by  such  pump. 

For  hydrant  in  yard,  where  no  dom- 
estic rates  are  paid  and  water  is  used 
for  domestic  purposes,  three  dollars  in 


addition  to  the  rates  hereinafter  fixed 
for  lawn  sprinkling. 

Section  2.  Any  water  consumer  may 
place  a meter  in  his  premises  for  meas- 
uring water  used  for  any  purpose,  sub- 
ject to  the  inspection  of  the  Water  Com- 
pany, or  an  officer  to  be  designated  by 
the  Mayor  of  the  City  for  that  purpose  ; 
such  meter  to  be  kept  in  good  condition 
and  repair  at  the  expense  of  the  owner 
or  user,  and  the  Water  Company  shall 
not  be  required  to  furnish  water  through 
a defective  or  imperfect  meter,  but  in 
case  of  the  refusal  or  neglect  of  any 
water  consumer  to  keep  his  meter  in 
repair,  may  charge  for  its  service,  the 
schedule  rates  herein  provided. 

Meter  Rates, 

For  water  measured  by  meter,  the 
Water  Company  may  charge  and  collect 
the  following  maximum  rates : 

For  a daily  consumption 
of  less  than  1,000  gals. 20c per  M Gals. 
For  a daily  consumption 
of  1,000  to  3,000  gals.  ..15c  “ “ “ 

For  a daily  consumption 
of  over  3,000  gallons 
(provided  that  the  min- 
imum charge  for  water 
measured  by  meter 
shall  be  $5  per  annum). loc  “ “ “ 

Section  3.  For  sprinkling  purposes 
the  Ann  Arbor  Water  Company  may 
charge  the  sum  of  four  dollars  per  an- 
num. 

The  sprinkling  season  shall  extend 
from  April  ist  to  October  31st  of  each 
year,  and  all  persons  paying  sprinkling 
rates  shall  be  entitled  to  the  use  of  one 
stream  of  water  through  a one-fourth 
inch  nozzle,  or  other  fixtures  discharg- 
ing an  equal  quantity  of  water,  under 
the  pressure  called  for  by  the  contract 
with  the  City,  four  hours  each  day  dur- 
ing the  sprinkling  season;  such  hours 
to  be  determined  by  the  Ann  Arbor 
Water  Company,  but  no  such  hours 
shall  be  fixed  earlier  than  six  o’clock 
a.  ra.,  or  later  than  eight  o’clock  p.  m. 
No  sprinkling  shall  be  done  during  a 
fire  alarm. 

Section  4.  Building  Rates. 

For  stone  work,  per  each  161/2  eu.  ft  2c 
For  brick  work,  per  M 50 


i8  — 


For  plastering,  per  lOO  yards 150 

For  grouting,  100  cu.  ft 20c 

For  cement  walk,  6 in.  deep,  100  sq. 

ft 15c 

For  cement  cellar  bottom,  4 in.  deep, 

100  sq.  ft 15c 


Rates  for  service  not  named  in  this 
Ordinance  are  subject  to  agreement,  but 
without  discrimination  for  similar  ser- 
vice rendered  between  the  Ann  Arbor 
Water  Company  and  the  applicant  for 
such  service. 

Section  5.  The  Water  Company  may 
collect  all  schedule  rates  quarterly  in 
advance  on  the  first  day  of  January, 
April,  July  and  October,  and  may  turn 
off  the  water  from  any  premises*  for 
non-payment  of  rates  herein  specified. 
For  water  measured  by  meter,  the  Wat- 
er Company  may  collect  monthly. 

Section  6.  Water  consumers  vacating 
premises  must  notify  the  Water  Com- 
pany at  its  office,  that  water  may  be 
turned  off,  and  may  be  held  responsible 
for  water  rates  until  such  notice.  When 
there  is  a change  of  residence  the  water 
consumer  may  have  the  overpayment 
refunded.  For  turning  on  or  turning 
oh*  water  from  any  premises,  the  Water 
Compan}^  may  charge  a fee  of  25c,  but 
no  person  shall  turn  the  water  on  any 
premises  until  application  for  service 
is  filed  at  the  office  of  the  Water  Com- 
patiy,  and  opportunity  is  given  the  Com- 
pany to  inspect  the  fixtures  upon  the 
premises, 

Section  7.  It  shall  be  unlawful  for 
any  person  or  persons  to  use  or  per- 
mit use  of  water  for  other  purposes  than 
those  for  which  water  rates  are  paid. 

Section  8.  The  inspector  or  other 
authorized  agent  of  the  Water  Company, 
or  an  officer  designated  by  the  Mayor 
of  the  City  for  that  purpose,  shall  have 
access,  at  all  reasonable  hours,  to  prem- 
ises upon  which  water  furnished  by  the 
Company  is  used,  for  the  inspection  of 
all  pipes,  meters,  fixtures,  and  connec- 
tions for  furnishing  water  to  such  prem- 
ises. 

Section  9.  No  person  or  persons  oth- 
er than  the  Chief  of  the  Fire  Depart- 
ment, or  persons  specially  authorized  by 
the  Chief  of  the  Fjre  Department,  or  the 


Water  Company,  shall  open  any  of  the 
fire  hydrants,  or  in  any  manner  injure 
or  molest  any  of  the  said  hydrants. 

Section  10.  The  Ann  Arbor  Water 
Company  may  make  rules  for  the  regu- 
lation of  its  service  not  inconsistent  with 
the  provisions  of  this  Ordinance,  or  oth- 
er regulations  made  by  the  Common 
Council;  provided,  that  no  such  rule 
shall  be  made  or  enforced  by  the  Com- 
pany, except  in  case  of  extended  con- 
flagration, restricting  the  free  use  of 
water  for  domestic  purposes,  but  only 
to  prevent  needless  and  wanton  waste. 

Section  ii.  Any  person  or  persons 
violating  the  provisions  of  this  Ordi- 
nance, and  any  agent  or  employee  of 
the  Ann  Arbor  Water  Company  col- 
lecting or  receiving  greater  sums  for 
supplying  the  inhabitants  of  the  City  of 
Ann  Arbor  with  water  for  domestic 
use  than  the  sums  herein  specified,  or 
unjustly  discriminating  between  the 
same  in  the  charges  made  or  services 
rendered,  shall  be  deemed  guilty  of  a 
misdemeanor,  and  upon  conviction  there- 
of, shall  be  fined  in  a sum  not  exceed- 
ing twenty-five  dollars  and  the  costs  of 
prosecution  of  each  offense.  In  impos- 
ing such  fine,  the  court  shall  have  power 
and  authority  to  commit  the  offender 
to  the  county  jail  until  the  fine  is  paid, 
or  for  a period  not  exceeding  thirty 
days. 

Section  12.  The  Ordinance  entitled : 
“An  Ordinance  to  Determine,  Define  and 
Fix  the  Rates  to  be  Clnrged  the  Inhab- 
itants of  the  City  of  Ann  Arbor  by  the 
Ann  Arbor  Water  Company,  for  Do- 
mestic Purposes,  and  to  Repeal  an  Or- 
dinance Entitled  ‘An  Ordinance  to  De- 
termine, Define  and  Fix  the  Rates  to  be 
Charged  the  Inhabitants  of  the  City  of 
Ann  Arbor  for  Water  for  Domestic  and 
Other  Uses,  by  the  Ann  Arbor  Water 
Company,  Passed  December  16,  1901  and 
Approved  December  20,  1901,’  ” — Passed 
March  10,  1902  and  Approved  March 
II,  1902, — is  hereby  repealed. 

Section  13.  This  Ordinance  shall  lake 
effect  on  and  after  April  i,  1906. 
EXHIBIT  NO.  12. 

Final  Report  vSpecial  Water  Works 
Committee,  Feb.  5,  1006, 


-~I9  — 


An  Ordinance  to  Provide  a Tribunal 
for  Hearing,  Investigating,  Reporting 
and  Advising  Upon,  Complaints  Rela- 
tive to  the  Water  Service  and  Supply 
to  the  City  and  its  Inhabitants. 

Whereas  the  Common  Council  may 
prescribe  such  just  and  reasonable  terms, 
restrictions  and  limitations  in  reference 
to  charging  and  collecting  compensa- 
tion for  the  supply  of  water  to  the  City 
and  its  inhabitants,  as  it  may  deem  prop- 
er, and  protect  the  same  from  the  im- 
position of  undue  or  excessive  charges; 
and 

Whereas,  in  order  that  the  Common 
Council  may  act  intelligently  in  the  mat- 
ter, and  with  fairness  to  all,  it  is  de- 
sirable to  create  a tribunal  to  hear  all 
complaints  relating  to  the  service  and 
supply  of  water  to  the  City  and  its  in- 
habitants, therefore, 

The  Common  Council  of  the  City  of 
Ann  Arbor  Ordain: 

That  there  is  hereby  created  a Board 
of  Complaint  to  be  composed  of  three 
freeholding  electors  of  the  City,  to  be 
appointed  by  the  Mayor  on  the  first 
Monday  in  May  of  each  year,  and  to 
hold  their  offices  from  the  second  Mon- 
day in  May  and  until  their  successors 
are  appointed  and  qualified.  Such 
Board  shall  have  power  to  hear,  investi- 
gate, report  upon  and  advise  the  Coun- 
cil upon  every  complaint  relative  to  the 
water  supply  and  service  to  the  City  and 
its  inhabitants,  whether  made  by  indi- 
viduals or  by  the  Ann  Arbor  Water 
Company,  and  whether  by  or  against 
said  Company.  Such  complaint  shall  be 
made  in  writing,  and  after  reasonable 
notice  shall  be  given  to  the  party  against 
whom  the  complaint  is  made,  specifying 
the  cause  of  the  complaint  and  the  time 
when  the  matter  complained  of  occurred, 
a public  hearing  shall  be  had  if  desired 
by  either  party.  The  said  Board  may 
require  affidavits  or  other  evidence,  and 
j are  authorized  to  make  investigations  in 
such  way  as  they  deem  best,  subject  to 
an  opportunity  to  be  heard  by  the  party 
charged  with  the  failure  or  non-per- 
formance of  duty  or  other  improper  con- 
duct. Such  Board  may  hold  meetings 
at  such  times  as  they  may  find  neces- 


sary, in  such  places  as  may  be  assigned 
to  them  by  the  City  Clerk.  They  shall 
report  in  writing  at  least  once  a month 
to  the  Common  Council,  setting  forth 
the  number  and  nature  of  complaints 
made  before  them,  their  conclusions  in 
the  matter,  with  their  reasons  therefor, 
and  such  recommendations  for  action  by 
the  Council  as  they  may  deem  proper. 
One  of  their  number  to  be  selected  by 
themselves  shall  act  as  chairman,  and 
another  likewise  chosen  shall  act  as 
their  secretary,  and  a majority  shall 
constitute  a quorum  to  do  business.  The 
secretary  shall  keep  a record  of  their 
proceedings,  to  be  signed  by  the  chair- 
man, and  these  records  shall  be  depos- 
ited in  the  office  of  the  City  Clerk,  to 
be  kept  on  file  therein,  and  shall  be 
public  records  of  the  City. 

This  ordinance  shall  take  effect  and 
be  in  force  from  and  after  its  legal  pub- 
lication. 

EXHIBIT  NO.  13. 

Final  Report  Special  Water  Works 
Committee,  Feb.  5,  1906. 

An  Ordinance  to  Require  Certain  Re- 
ports to  be  Made  by  the  Ann  Arbor 
Water  Company  to  the  Common  Coun- 
cil. 

Whereas  the  Ann  Arbor  Water  Com- 
pany has  contracted  and  agreed  to  fur- 
nish the  City  and  its  inhabitants  with 
water  for  domestic  and  other  purposes, 
at  reasonable  rates,  and 

Whereas  the  Common  Council  of  the 
City  of  Ann  Arbor  is  authorized  to  pre- 
scribe such  just  and  reasonable  terms, 
restrictions  and!  limitations  upon  the 
Ann  Arbor  Water  Company,  in  refer- 
ence to  charges  and  compensation  for 
the  supply  of  water  to  the  City  and  its 
inhabitants,  as  it  may  deem  proper,  and 
to  protect  the  same  from  the  imposi- 
tion of  undue  or  excessive  rates  or 
charges,  and 

Whereas  certain  information  is  neces- 
sary for  the  proper  adjustment  of  rates 
and  charges,  which  the  City  cannot  oth- 
eriwse  obtain,  therefore 
The  Common  Council  of  the  City  of 
Ann  Arbor  Ordain: 

It  is  hereby  made  the  duty  of  the 
Ann  Arbor  Water  Company,  and  the 


— 20 


said  Company  is  hereby  required,  on  or 
before  the  first  day  of  February  in  each 
year,  to  make  and  file  with  the  City 
Clerk,  under  the  oath  of  the  President, 
Secretary,  Treasurer,  or  Manager  of 
such  Company,  an  annual  report  in 
writing,  stating  the  following  items  for 
the  preceding  year  ending  Dec.  31st, 
that  is  to  say: 

1.  The  total  amount  of  money  ac- 
tually and  in  good  faith  invested  in  all 
property  used  in  procuring,  collecting, 
purifying  and  distributing  water  to  the 
City  and  its  inhabitants,  on  and  up  to 
the  preceding  Dec.  31st. 

2.  The  actual  amount  of  the  fore- 
going sum  invested,  derived  from  the 
sale  of  bonds,  from  payments  upon  stock 
issued  by  the  Company,  and  from  earn- 
ings derived  from  the  operation  of  the 
Company. 

3.  The  total  gross  income  from  all 
sources  for  the  year,  specifying  the 
amount  received  from  the  City,  from  the 
University  of  Michigan,  from  commer- 
cial purposes,  and  from  domestic  ser- 
vices. 

4.  The  total  operating  expenses  for 
the  year,  including  and  specifying  the 
amount  paid  for  salaries,  for  fuel,  for 
repairs,  for  taxes,  for  insurance,  and 
other  operating  expenses. 

5.  The  sums  paid  for  renewals,  ex- 
tensions, interest  and  dividends. 

6.  The  number  of,  and  the  amount 
received  from,  each  of  the  following; 

Barber  shops,  with  one  chair;  addi- 
tional chairs.  Bakeries,  using  i bbl.  of 
flour  daily;  each  additional  barrels  used. 
Banks.  Beer  tubs.  Bath  tubs,  private 
family;  additional  tubs.  Bath  tubs,  pub- 
lic; additional  tubs.  Billiard  rooms,  one 
table ; additional  tables.  Breweries. 
Butcher  shops.  Blacksmiths,  one  fire; 
additional  fires.  Builders’  rates,  perch 
of  stone;  1,000  brick;  plastering,  i,  2, 
and  3 coats,  cubic  feet  of  grouting ; 
square  feet  of  cement  walk,  4",  6";  ce- 
ment cellar  and  basement  floors;  cubic 


feet  of  concrete ; backfilling  trenches. 
Fountains.  Revolving  lawn  sprinklers. 
Gas  works.  Green  houses.  Hotels.  Of- 
fices and  private  rooms.  Printing  of- 
fices. Churches.  Dwellings,  4-rooms ; 
additional  rooms,  including  those  living 
over  stores.  Boarding  houses.  Frater- 
nities. Private  stables.  Livery  stables, 
horses  up  to  ten ; additional  horses. 
Cows.  Laundries.  Saloons.  Restau- 
rants. Soda  fountains.  Stores  of  all 
kinds.  Hydrants  for  stores.  Yard  and 
lawn  hydrants.  Steam  boliers,  horse 
power,  and  days.  Water  closets,  pri- 
vate family;  additional  closets.  Water 
closets,  saloons  and  boarding  houses; 
Water  closets,  hotels.  Urinals,  private; 
saloons  and  boarding  houses.  Manu- 
facturing establishments.  Work  shops, 
5 persons  or  less;  over  5 persons.  Tap 
fees.  Quantity  of  water  at  the  various 
or  special  meter  rates,  including  that 
furnished  to  the  University  of  Michi- 
gan. Other  services  for  which  charges 
are  made. 

7.  The  total  number  of  gallons  of 
water  pumped,  by  months,  for  the  year. 

This  ordinance  shall  go  into  effect  and 
be  in  operation  from  and  after  its  legal 
publication. 

By  Aid.  Fiesher — 

Resolved,  that  the  report  of  special 
water  committee  be  received,  placed  on 
file  and  printed  in  the  minutes  of  this 
meeting,  and  that  3,000  copies  be  printed 
and  distributed  under  the  supervision 
of  the  city  clerk,  and  that  the  committee 
be  discharged. 

Adopted  as  follows: 

Yeas — Aid.  Blair,  Schlenker,  Kurtz, 
Kearns,  Miller,  Markey,  St.  James, 
Sherk,  Manwaring,  Coon,  Fischer,  Ab- 
bott, Pres.  Gilmore. — 13. 

Nays — none. 

Moved  by  Aid.  Markey,  that  when 
we  adjourn  we  adjourn  to  meet  next 
Monday  night,  Feb.  12,  7:30  o’clock; 
supported  and  adopted. 


